522 Naphew Ln

Kokomo, IN 46901

$159,900C+

3 bd · 2.0 ba · 2,208 sqft · Built 1946 · MultiFamily · Pending · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,319/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$243
• HOA: −$0
• Vac / Maint / Mgmt: −$487
• Net cashflow: $751/mo
• Annual: $9,009/yr
• Cap rate: 11.93%
• Cash-on-cash: 20.12%
• DSCR: 1.90
• 1% rule: 1.45%
• Cash to close: $44,772

Investor read

• This is a 1×3.0bd/1.5ba + 1×2.0bd/1.0ba units multifamily listed at $160k.
• At list price, monthly cash flow is $751 ($9k/yr) — positive. Per door: $375/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $160k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#227 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D, amenities F, commute F.
• Northwestern School Corporation (rural): math 50% / reading 53% proficiency, ranked #35 of 301 in IN (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Northwestern Elementary School (math 50% / reading 50%, grade D+, #275 of 994 statewide, top 28%, 677 students, 28% FRL); Northwestern Middle School (math 51% / reading 51%, grade C, #40 of 330 statewide, top 12%, 285 students, 30% FRL); Northwestern Senior High School (math 52% / reading 82%, grade B, #24 of 369 statewide, top 7%, 580 students, 24% FRL).
• Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.5%/yr); 242 active listings in the ZIP; 194 units permitted in Howard County in 2024 (0 in 5+ unit buildings).
• Howard County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $45k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 11.9% vs local median 5.2% in Kokomo — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $2,319/mo this rent would consume 46% of the median local household income ($60k/yr) (locally 1116% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1946 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.